TAIPEI (Taiwan News) — The New Taiwan dollar depreciated 5.29% against the US dollar in the first six months of 2024, Taiwan’s central bank confirmed on Wednesday (Oct. 16).

The central bank said reasons for the depreciation included the strong US economy and persistent inflation in the first half of the year, per CNA. The report also said the US Federal Reserve postponed and reduced the amount of interest rate cuts, while US Treasury bonds and the US dollar grew in value.

The bank said this occurred at the same time as high demand for US dollars in Taiwan’s domestic market. The bank sold off US$9.06 billion (NT$291.57 billion) worth of currency reserves to stabilize the New Taiwan dollar during this time, the report said.

The bank said the depreciation of the New Taiwan dollar against the US dollar was less for the period between January and October, at 4.45%. It pointed out the currency depreciated less than the Korean won (5.2%) and the Japanese yen (5.82%) in the same period.

The bank said foreign investors have been cashing in on high Taiwan stock prices, and that US$25 billion was remitted in the first six months of the year. It also noted that the value of the international dollar has risen 1.94% since January, and said these two factors were the main reason for the 4.45% depreciation.

The bank's report said that Taiwan’s output and private investment are expected to show continued momentum into the new year. It noted that some are concerned about inflation, and said the inflation rate is expected to be lower in the second half of 2024 than the first half, and will continue to fall to below 2% in 2025.